We may count more or less of income than the individual actually
receives.

Overpayment Recovery

We count more income than the individual receives where a benefit
payment (such as a Social Security benefit) has been reduced to recover
an overpayment. In such a situation, the individual is repaying a
legal obligation through the withholding of a portion of his or her
benefit amount, and the amount of this withholding is part of the
individual's unearned income.

Garnishment or Debts

We also include more than the individual receives if amounts
are withheld from unearned income because of a garnishment, or to
pay a debt or other legal obligation, or to make any other payment
such as payment of the individual's Medicare Part B, C, or D premiums.

Expenses of Obtaining Income

We count less than the individual actually receives if part
of the payment is for an expense incurred to obtain the payment.
For example, if money is received from an accident settlement, we
subtract from the amount of the payment any medical, legal, or other
expenses connected with the accident. Similarly, if the individual
receives a retroactive check from a benefit program such as workers
compensation, we subtract legal fees connected with the claim. We
do not subtract from any taxable unearned income the amount used
to pay personal income taxes. The payment of taxes is not considered
an expense of obtaining income.

Retroactive Benefits

We count retroactive monthly benefits such as Social Security
benefits as unearned income in the month the individual receives
the retroactive benefits.

One-Time Payment

We evaluate one-time payments following normal income counting
rules. Since a one-time payment is not a recurring monthly payment,
we count the payment like it was received in equal payments spread
over 12 months. For example, if an individual receives a one-time
payment of $3,600.00, we divide the payment amount by 12 months count
the one-time payment as unearned income in the amount of $300.00
per month for 12 months.

Veterans Benefits

If the individual receives a veteran's benefit that includes
an amount paid because of a dependent, we do not count as unearned
income the amount paid because of the dependent. However, the portion
of the payment to the veteran that is attributable to the dependent
is counted as the unearned income of the dependent, if the dependent
resides with the veteran or receives a separate payment from the
Department of Veterans Affairs.

Rental Income

We count rental income as unearned income after expenses are
deducted. We use the amount of net rental income reported on your
last Federal tax

Return and divide the amount by 12 months to determine your
average monthly net rental income.

"Patrimony" Funds Received by Members of Religious
Orders Who Have Taken a Vow of Poverty

Patrimony traditionally refers to a family inheritance. Members
of religious orders often relinquish control of the patrimony to
the religious order when required by the terms in his or her vow
of poverty. If the member can access the funds for his or her own
use, we count funds placed into the patrimony as unearned income
in the month the member receives funds (e.g., the inheritance). We
count only funds that the member can withdraw from the patrimony
as income. We do not count any interest and dividends earned by the
patrimony as income for the member. Patrimony funds are not a resource
if the member has no access to the funds to pay for his or her food
and shelter expenses, even if he or she retains ownership of the
patrimony.